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Dow Jones posts 27% decline in Q2 earnings

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New York—Dow Jones & Co., publisher of The Wall Street Journal, posted a 27% drop in second-quarter earnings on stock-compensation and restructuring charges. Dow Jones, whose board approved News Corp.’s $5 billion takeover bid Tuesday, reported net income of $21.0 million compared with $28.8 million a year earlier.

Revenue grew 16% to $529.7 million.

The latest quarter’s results included 20 cents a share in charges, including 13 cents for higher stock-compensation costs related to the surge in Dow Jones’ shares following News Corp.’s bid to acquire the company for $60 per share.

Advertising revenue at the flagship Journal declined 6.8% (on an 11.4% drop in volume) as weak technology, financial, general and classified advertising offset an increase in most consumer categories. Ad revenue at Barron’s grew 26.3%.

Revenue for the company’s enterprise-media business jumped 81% to $178.2 million due to the December acquisition of Reuters’ 50% stake in Factiva.

Paid subscribership to WSJ.com jumped 24% to 983,000; paid subscribers to Barron’s Online grew 42.6% to 97,000.

—Matthew Schwartz

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